• A 50% tariff hike on voice, data, and SMS services in January 2025 led to a decline of approximately one million internet users in Nigeria during February.
• Data consumption dropped by 12% in February, though a marginal rebound occurred in March, it remained below January levels, indicating continued caution among subscribers.
• Despite the drop in internet users, the telecom industry added 3.39 million new telephone users, increasing Nigeria’s teledensity, showcasing resilience in other service areas.

In January 2025, Nigeria's telecommunications sector implemented a 50% tariff increase on voice, data, and SMS services. This policy change led to a notable decrease in internet users, with approximately one million users disconnecting in February, according to the Nigerian Communications Commission (NCC). While there was a slight recovery in March, data consumption remained below the levels observed before the tariff hike, suggesting a lasting impact on subscriber behavior. Despite this downturn in internet usage, the telecom sector demonstrated resilience by adding over three million new telephone users, thus improving the country's teledensity. MTN Nigeria continues to lead the market in both internet users and active telephone lines.

• What: A 50% tariff hike on voice, data, and SMS services led to a decline in internet users and data consumption in Nigeria.
• Who: The Nigerian Communications Commission (NCC), MTN Nigeria, Airtel Nigeria, Globacom, 9mobile, and Nigerian internet users.
• When: The tariff hike was implemented in January 2025. The decline in internet users was observed in February 2025, with a slight recovery in March 2025.
• Where: Nigeria, specifically focusing on the telecommunications sector and its subscribers.

The analysis reveals that increased tariffs have a direct and immediate impact on consumer behavior, leading to a reduction in internet usage. The slight recovery in March suggests that users may be adjusting to the new tariffs, but overall consumption remains affected. The growth in telephone users indicates that while some users may be cutting back on data, the demand for basic telecom services remains strong. MTN's continued market dominance underscores its position as a leading provider in the Nigerian telecom market. The porting data suggests dissatisfaction with 9mobile's services, potentially warranting further investigation into the reasons behind customer churn.

The Nigerian telecommunications sector faces challenges balancing revenue generation with affordability for consumers. The tariff hikes led to an initial decline in internet users, although the sector shows signs of resilience with overall growth in telephone subscriptions. Monitoring consumer behavior and porting trends will be crucial for operators to adapt their strategies and remain competitive.